G42 Partners with Nvidia to Develop AI-Powered Climate Tech Solutions

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G42 Partners with Nvidia to Develop AI-Powered Climate Tech Solutions

G42, a UAE-based artificial intelligence (AI) company, announced a partnership with US chipmaker Nvidia on Friday to collaborate on climate technology, ahead of the UAE president’s upcoming visit to the White House.

The Gulf-based firm stated that the collaboration aims to develop AI-driven solutions to enhance the accuracy of global weather forecasts. As part of the partnership, they will establish a climate technology lab and operational headquarters in Abu Dhabi.

The UAE, through government-backed G42, is making substantial investments in AI as part of its effort to diversify its economy away from oil dependency. Recent partnerships between UAE and US firms reflect this strategy.

In April, Microsoft announced plans to invest $1.5 billion in G42, and this week, both companies revealed they would be opening two centers in Abu Dhabi.

Moreover, Abu Dhabi's MGX investment firm is partnering with BlackRock and Microsoft to manage a $30 billion fund focused on AI infrastructure.

However, US concerns have grown over Middle Eastern countries, including the UAE, potentially acting as conduits for advanced US AI technology to reach China. As a result, new restrictions on AI chip exports were introduced last year, requiring licenses for shipments to these nations.

UAE President Sheikh Mohammed bin Zayed Al Nahyan will visit Washington on Monday, where he will meet with US President Joe Biden to discuss Middle Eastern security, advanced technology, and AI development.

Anwar Gargash, the UAE president’s diplomatic advisor, noted that the visit will also include meetings with Vice President Kamala Harris and business leaders, with a strong emphasis on economic cooperation and AI collaboration.

Western Cape Premier Attends New York Climate Week to Champion African Climate Action

This annual event gathers a diverse group of speakers to discuss the urgent need for structural changes to address vulnerabilities brought on by the climate crisis, as well as its related social and political injustices. Winde will take on the role of Africa’s new co-chair for the Under 2 Coalition of global subnational governments. He will engage in discussions to explore ways to enhance climate action through better collaboration across all levels of government, focusing on both adaptation and mitigation.

The Western Cape Government is dedicated to reducing climate vulnerability and enhancing the resilience of people, the environment, and the economy in response to the challenges posed by the climate crisis.

The Western Cape Climate Change Implementation Plan: Vision 2050 highlights the shared responsibility to tackle climate change. Climate resilience and resource sustainability are key elements in the current provincial strategic planning and budgeting process.

While the premier addresses African climate issues globally in New York, the African Climate Alliance, alongside key civil society partners, is organizing the third Cape Town Climate Week from September 23 to 28.

The Department of Environmental Affairs and Development Planning supports the discussions that will take place during Cape Town Climate Week 2024 and encourages all stakeholders to take part in these opportunities for collective action towards building a climate-resilient and equitable future.

The Western Cape Climate Change Response Strategy and Implementation Plan: Vision 2050 outlines initiatives aimed at promoting environmental sustainability and social equity. By focusing on systemic solutions, it strengthens community resilience and supports the province’s vision of a just and sustainable future. Minister Anton Bredell’s remarks, following the president’s recent signing of the Climate Change Act, echo the sentiments of Cape Town Climate Week: ‘Our province is committed to ensuring vulnerable communities are not left behind during this transition. We emphasize equitable access to resources, education, and opportunities, enabling all residents to actively engage in climate action.’

Jim Adler of Toyota Ventures Urges Climate Tech Startups to Focus on Securing Future Buyers"

Jim Adler, founder and general partner at Toyota Ventures, expressed concerns that climate technology advancements could fall into the "valley of death" if companies struggle to generate sufficient demand for survival.

His concerns are well-founded. In the first half of 2024, climate tech investments saw a decline for the second year in a row, both in terms of funding and the number of deals, as investors increasingly hesitate to back high-risk, capital-intensive ventures without a clear market pathway.

During a speech at a Climate Week NYC event, Adler suggested that one way to secure demand for climate tech is through forward offtake agreements, where a customer commits to purchasing a certain amount of a product at a pre-agreed price and date. "This encourages investors to back companies to meet those targets," Adler told TechCrunch. He explained that early-stage investments, often seen as a "telescope into the future," become more appealing when there's a clear customer commitment.

Addressing an audience of around 75 people in Manhattan, Adler pointed out that disruptive technologies, such as railroads and electric power, only scale after reaching a 10% to 20% adoption rate. Without reaching that threshold, "the dynamics of capitalism don’t kick in," he said, adding that if demand doesn’t materialize, the technology fails. "Capitalism can scale these technologies, but only if customers show up."

This issue is even more critical given that growth-stage deals in climate tech dropped by 33% in the first half of the year, according to a CTVC report. This decline hinders the ability of companies that have demonstrated their technology on a smaller scale to secure the funds needed for expansion.

Adler emphasized that growth-stage investors are unlikely to invest without clear demand signals, such as forward offtake agreements. To encourage customers to commit to these agreements, he suggested that government mandates could play a role. For example, Revel, originally an e-moped sharing startup, is now developing EV charging infrastructure. Although current demand for its charging services may be modest, driven largely by ride-hail drivers, mandates in states like California and New York that require all new car sales to be electric by 2035 provide a crucial signal to investors. Revel has raised approximately $270 million, with significant backing from firms like BlackRock.

Adler also expressed hope that low-carbon fuels like hydrogen could secure future demand if prices drop to $2 per kilogram, potentially driving adoption. “Investors can then invest knowing there’s a customer in volume,” Adler said. "If this doesn't happen, we all should be concerned."

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